Are Free or Low-Cost Computers a Good Deal?

When you see or hear of a company offering computer systems for just a few hundred dollars, or even for free, be advised that such deals are questionable at best and outright scams at worst. Do yourself a favor and stay well enough away.

Over the past few years a slew of companies have advertised

computer systems either for free or at rock-bottom prices. Some companies offer free systems to customers who agree to sign long-term ISP contracts, while others give computers to customers who agree to provide detailed information about their purchasing habits, or to view a constant stream of advertising. Still others sell systems for token prices (usually less than $200) with the same conditions attached.

On the surface, these deals might sound fair: in exchange for some personal information, or for Internet service you might need anyway, you get a brand-new computer. What's wrong with that? For starters, the last thing your business needs is a contract binding it to a dial-up Internet service that it might soon outgrow. In some cases, a "free" PC deal requires a three- or four-year ISP contract worth hundreds of dollars. Even when you're ready for high-speed Internet access — which will be sooner than you might think — you'll still be paying for that dial-up service.

There are plenty of other ugly surprises buried in the fine print of free PC contracts. Some companies charge security deposits of $200 or $300. Some also charge application fees, mandatory service and support fees, cancellation fees, and other hidden fees. That's the kind of "free" product most of us can live without.

Plenty of legitimate companies now sell quality computer systems for under $500. While that's not the same as free, at least you'll get a quality machine and reliable service from a vendor that will still be around next week.